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Saturday, 5 June 2010 - Honda says Chinese labor dispute has been settled
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    Read more with google mobile : Honda says Chinese labor dispute has been settled

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Honda says Chinese labor dispute has been settled By CARA ANNA,Associated Press Writer - Saturday, June 5 Send IM Story Print BEIJING – Honda Motor Co. said a labor dispute at a parts plant that crippled the automaker's production in China has been resolved after a wage increase of 24 percent, and the affected assembly plants would be running again Saturday. The two-week strike at an engine and transmission factory forced Honda to shut down four Chinese assembly plants for lack of parts. It highlighted tensions between workers and foreign companies that look to China as a source of cheap labor and a fast-growing market amid weak demand elsewhere. "Poor communication led to a great deal of discontent and eventually developed into a labor dispute. Our company will reflect deeply on this and strengthen communication with employees and build mutual trust," Beijing-based Honda Motor (China) Investment Co. Ltd. said in a statement. "All the factories are back to normal," said Yasuko Matsuura, a spokeswoman for Honda in Tokyo. She said the two sides agreed to a 24 percent increase in wages, but would not talk about other aspects of the deal. Calls to the plants rang unanswered Saturday. Earlier in the week, employees at the parts plant agreed to return to work on Friday after a deal was reached, but some were dissatisfied and threatened to walk out again to press for more money. Honda spokesman David Iida at the company's office in Torrance, California, said Friday that all workers have agreed to a new offer and the company expects no further work disruptions. "Now everyone's on board and everyone's working," he said. Employees at the factory in Foshan, near Hong Kong, agreed to a pay raise of 366 yuan ($53.60) per month for each full-time worker, which would increase the monthly pay for a new employee to 1,910 yuan ($280). Some employees still were demanding an 800 yuan ($117) raise, though all agreed to go back to work. Iida said he had no information on what was done to reach agreement with workers who were unhappy with the raise. Three of the assembly plants are in Guangzhou, near Foshan, and make Accord sedans, Odyssey minivans and Jazz hatchbacks. The fourth in the central province of Hubei makes Civic sedans and CRV sport utility vehicles. The strike came at an awkward time for Honda, which announced plans last month to expand production capacity in China by nearly one-third by 2012 to meet surging demand in the world's biggest auto market. Strong sales in China helped Honda jump from a loss to a 72 billion yen ($774 million) profit for the January-March quarter. Companies in China are finding it harder to attract and keep workers, who are demanding better pay and working conditions. On Wednesday, Taiwan's Foxconn Technology Group announced it was raising pay by 30 percent for factory employees in China after a spate of suicides that activists blamed on stressful conditions and overwork. Foxconn makes iPhones and other products under contract. A Foxconn official said the company hopes the raises lead to a "happier work environment." ___ Associated Press writers Tom Krisher in Detroit and Malcolm Foster in Tokyo and researchers Bonnie Cao and Henry Hou in Beijing contributed to this report. Recommend Send IM Story Print Related Articles G20 set to disagree on banking reform AFP - 1 hour 35 minutes ago S.Korean firms sign deal on Argentine lithium project AFP - Saturday, June 5 G-20 agrees to advance reforms, rebalance growth AP - Saturday, June 5 G-20 finance chiefs mull deficits, banking rules AP - Saturday, June 5 Honda says Chinese labor dispute has been settled AP - Saturday, June 5 News Search Top Stories Aid ship intercepted by Israeli troops: Gaza committee US employment report sparks global recovery fears Nadal calls truce with title rival Soderling Dow hits four-month low on weak jobs report US stocks plunge, Dow down over 3.0 percent More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Cricket sex video reveals wild mating behavior McDonald's recalls 12 mln tainted 'Shrek' glasses Russia finds 10,000 bombs on sunken German ship 'Mars crew' locked up for 520 days of isolation US employment report sparks global recovery fears More Most Viewed » Hubble catches planet being devoured by its star The point about pain: New study sheds light on acupuncture Ocean fish could disappear in 40 years: UN Paris museum burglar grabs 120-million-dollar art haul US team creates first 'synthetic life' More Most Recommended » Elsewhere on Yahoo! 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